Cryptocurrency investments

Cryptocurrency investments

Over the last 5 years, the first cryptocurrency has risen by more than 1620%, becoming one of the most profitable assets. Investing in cryptocurrency is easy, you do not need to have a lot of capital, as in the case of mining, or special knowledge, as in trading.

The undisputed leader in digital money is bitcoin. It is the first cryptocurrency to hold more than half of the market, with a current share of 58.6%. However, there are plenty of other ways to invest. One of them is to find an experienced manager and give him money to manage. And this is where the TradeLink platform comes in – the marketplace where traders show their trading results, and investors choose among them the best ones to cooperate with.

It is a mistake to buy only bitcoins, and you must remember the rule of diversification. It says that one asset should not occupy more than 10% of the portfolio, explained the managing partner of Raison Asset Management Andrei Berezin. According to him, making a portfolio only of cryptocurrencies, even if they are different, is risky.

“All cryptocurrencies should fit into 10% of the investment amount, the rest – stocks, bonds, gold, etc. In absolute numbers, the minimum threshold for investing in crypto can be even $10, but the way you buy it is important. If an investor buys not a real cryptocurrency, but a derivative instrument from a broker – there is no minimum. If it’s about buying ETH and BTC, I’d recommend counting on a minimum of $200 so that commission costs don’t cut into returns. In some cases, the minimum wallet fee is $10, plus the Ethereum network fee is another $15. This already determines the entry amount,” the analyst advised. And you don’t need to invest a lot of money to work with the TradeLink platform. You can start with at least $50.

Michael Ross-Johnson, CEO of the cryptocurrency neobank Chatex, called $1000 the best option to start investing in cryptocurrency. He also advised using no more than 10% of available income to invest in digital assets. This approach will help to feel all the risks, but at the same time, the investor cannot lose too much. However, this amount (or percentage of income) will allow us to experience profit opportunities as well.

“When starting to invest in the crypto market, one should consider the following: the strategy when funds are invested in assets with record growth and the promise of quick profits (the DeFi market, for example) carries equally high risks. Conversely, investments in cryptocurrencies with an average growth rate (Bitcoin or Ethereum) are less risky but can bring good returns over the long term. The principle always works: “high-profit percentage – high risk”, “low-profit percentage – moderate risk”. The question is in the choice of strategy for each investor,” the expert explained.

Grigory Klimov, the founder of the stable cryptocurrency platform Stasis, added that it is worth investing 2% of the value of all their assets, including real estate, cars, deposits, stocks, and cash. Klimov advised to do it once a year.

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